Logistic Report

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SMT1004
Logistics Operations/Techniques
1213

Name : SHAO HONGYI
Id : u1069593
Data:02/12/2012

content
Introduction3
Background3
Importance of logistic and supply Chain4
Importance of cost4
Importance of logistics customer service4
Analysis of structure planning5
The relationship among four factors5
Analysis of inventory6
Logistics models6
The Allocation Models6
Allocation Models of product mix problem6
The staff issue management and Staff-Scheduling problem7
The Network model and the network model of transportation model7
The network model of two stage transportation model8
The network model of Distribution Centre Location8
The network model of set covering model8
Advertising Model8
Using the model to solve the problem9
Distribution Centre location9
Covering set model10
The problem of two stage transportation model12
The staff scheduling problem14
The problem of Advertising Model15
Conclusion17
Reference List18
Appendix19

Introduction
In this report firstly the logistic issues and customer service issues would be talked Secondly, some of the problem which the Argos Company faced would be enumerate and the correct ways will be find to solve them. Finally, the report will use some professional knowledge of logistics and supply chain to analyse them. It will establish some logistic models like the transportation model and the Staff-Scheduling model. Finally, this report will enumerate some models which links the case and a explanation would be given. Background

Argos is the largest non-food retailer in the UK with annual sales close to £4.3bln. The company sells a wide range of home, electrical, garden and DIY products through its catalogue, website and over 700 shops in the UK and Ireland. Face with significant growth, Argos wanted to increase product availability and reduce costs. Argos was dealing with a rapidly expanding product range and increasing price competition in many core product areas. Being a catalogue retailer, the catalogue is in fact an all-season promise of product availability to the customer. It means that Argos has to stock all those products throughout the season. Security of supply and pick accuracy are very important. Now Argos decided to centralise the distribution of small items to increase national availability by concentrating supplier deliveries to one site and improving picking efficiency. At the same time, Argos also wanted more control and continuity of direct imports, which make up a growing proportion of the product range. For supply chain management(SCM), it is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Nowadays, many companies have had a good supply chain system, such as Wal-Mart, United Parcel Service and Tesco. In the global supply chain system, With the increase competition in the business, a company needs a good supply chain management, so that it can help company get more and more efficiency and get a good prospect (Lummus & Vokurka, 1999). Importance of logistic and supply Chain

The traditional objective of supply chain management is to minimize total supply chain cost to meet fixed and given demand. (Shapiro,2001). around the core business, through the control of information flow, logistics, capital flow, starting from the procurement of raw materials, made of the intermediate products and the final product, the final product delivered to consumers by the sales network. The goal of supply chain management is the premise that meet customer needs, the entire supply chain (from suppliers, manufacturers, distributors to consumers) in all...
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